Procera : institucionalidade, subsídio e eficácia
By: REZENDE, Gervásio Castro de
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ArticlePublisher: São Paulo : Editora 34, out./dez.2001Revista de Economia Política = Brazilian Journal of Political Economy 21, 4 , p. 112-129Abstract: This paper presents the results of a research on the efficacy of the Special Progam of Credit for Agrarian Reform (PROCERA). It begins by showing the recent evolution of disbursements within the Program, the sources of funds and the subsidy rate. It then proceeds by discussing the objectives of the Program and proposing a measure of its efficacy. In addition to that, it is argued that, due to the high subsidy rate and the program's institutional framework, that generates the belief on the part of the borrower that the loan is not to be paid, the Program's efficacy must be very low. This means that most credit is used to buy consumer goods or to increase production for self-consumption, instead of increasing production geared to the market. Some empirical evidence in favor of this hypothesis is also presented
This paper presents the results of a research on the efficacy of the Special Progam of Credit for Agrarian Reform (PROCERA). It begins by showing the recent evolution of disbursements within the Program, the sources of funds and the subsidy rate. It then proceeds by discussing the objectives of the Program and proposing a measure of its efficacy. In addition to that, it is argued that, due to the high subsidy rate and the program's institutional framework, that generates the belief on the part of the borrower that the loan is not to be paid, the Program's efficacy must be very low. This means that most credit is used to buy consumer goods or to increase production for self-consumption, instead of increasing production geared to the market. Some empirical evidence in favor of this hypothesis is also presented
v. 21, n. 4(84)
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